Refinance loans were down 12% in the second quarter compared with a year ago, which followed a first-quarter decline.

The big boom in refinance loans was 2012-2013 with a mini-boom in 2015. Since then a decline has been expected, Blomquist said. Even though the interest rates have remained low, the pool of homeowners who can benefit from a refinance is becoming ever more shallow. “There's only so much of a market there.”

“Low interest rates as a stimulus are losing their effectiveness,” he said.

The picture is blurrier on purchase loans, Blomquist said. Softer metro areas in the Midwest showed improvement, while markets that have been strong and are known for high prices tended to fall. Areas with purchase loan declines included Honolulu, Denver, San Francisco, Dallas, Portland, Ore. and San Jose, Calif.

“They've become a victim of their own success: The higher prices are pricing some people out of the market,” he said.

But many of those markets were also heavy contributors to the gains in home equity loans. In some cases, realtors are reporting that home owners are using the proceeds to make strong cash offers on their next home. “If you're a seller and a buyer, you might have to leverage that strength as a seller to be a buyer.”